One Can Estimate the Expected Rate of Return or the Cost

question 41

Multiple Choice

One can estimate the expected rate of return or the cost of equity capital as follows:

• A)Dividend yield - expected rate of growth in dividends.
• B)Dividend yield + expected rate of growth in dividends.
• C)Dividend yield/expected rate of growth in dividends.
• D)(Dividend yield)× (expected rate of growth in dividends).

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Definitions:

Behaviors

The actions or reactions of individuals or groups in response to external or internal stimuli.

Happy

A state of well-being and contentment; feeling or showing pleasure or joy.

Unhappy

A state of dissatisfaction or sadness, where an individual's emotional needs or desires are not fulfilled.

External Factors

Conditions or situations outside an organization or individual’s control that can impact performance or outcomes.